LAGOS—FEDERAL Government yesterday ordered a one naira per litre cut in the price of petrol, citing positive developments in the oil market in the last two months.
Under the new dispensation, the ex-depot price of petrol is now N41.5 per litre, while the base line of petrol price in coastal states will be N48 and range between N52 and N54.50 in the far northern states.
Also yesterday, senior staff of the Department of Petroleum Resources (DPR) under the umbrella of Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) commenced an indefinite strike to protest poor welfare package.
Dr. Oluwole Oluleye, Executive Secretary of the PPPRA, announcing the cut in the price of petrol said the decision had been communicated to the Nigerian National Petroleum Corporation (NNPC). The corporation, he said, would direct its subsidiary, Petroleum Products Marketing Company (PPMC), to effect the new price by today.
Dr Oluleye said the marginal fall in fuel price would reflect the drop in the international price of crude oil (Bonny Light) from $50 in October to $38 in December and the a marginal, favourable exchange rate of N132 to the dollar, adding that while the landing cost of petrol was N50 per litre in August it had since dropped to N40 per litre.
Reacting to the development, Mr. Akin Fatunke, new Public Affairs Manager of Mobil Oil Nigeria Plc, explained that his organisation had not been notified by the relevant agencies, adding that as soon as they were notified the company would react.
Meanwhile, staff of DPR corporate head office in Lagos, yesterday locked out the management staff to drive home their grievances.
Chairman of PENGASSAN, DPR branch, Comrade Mohammed Bulama Saidu, told journalists that the protest became inevitable because the union had exhausted all avenues to persuade the management to resolve the problems through dialogue.
The workers union had earlier issued the management an ultimatum to implement their demands, but this expired on August 25, 2004 and was extended by 14 days.
The union said the National Secretariat of PENGASSAN had to intervene in October 2004 to ensure that the issue did not degenerate. "Afterwards, we also had a meeting with the director of DPR but we are saddened that up till now, nothing has been done on these issues," the union said.
The workers’ union also said they had written both houses of the National Assembly over their plight.
